A store will give you a 3.25% discount
Question
A store will give you a 3.25% discount on the cost of your purchase if you pay cash today. Otherwise, you will be
billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
what is the effective annual rate?